The sale of 907 acres of the East African Portland Cement (EAPCC) land in Machakos County was planned in 2022, Kenyans.co.ke can reveal.
According to the company's annual report for the full financial year ended June 2022, EAPCC has been looking to offload the 907 acres from which the manufacturer seeks to net Ksh5 billion.
"The Company has embarked on a regularization plan of LR 8784/144, 8784/145 & 8784/653 totaling 907 acres which had been heavily populated with squatters. This plan ensures that the local community has the first right of purchase with expected proceeds of Ksh5 billion," the report reads in parts.
Interestingly, LR 8784/144,145 and 653 were some of the parcels listed for sale when the company put out an advert on Tuesday, October, 16, 2023.
However, when the company put out the advert this week, the manufacturer did not reveal how much the land would go for.
In the same report, the company also revealed that it had subdivided 1,000 acres of the adjacent property LR 10424 into 50-acre plots which it intended to put on sale with a view to rake in Ksh5 billion.
The plan was to sell each of the 50 plots at Ksh100 million.
In the report, the company affirmed that disposing of 'idle assets' like land was part of EAPCC's strategy to raise working capital.
The company also explained that it was in the process of engaging squatters accused of invading the land in Mavoko, Machakos County with a view of solving the outstanding issue amicably.
It is also instructive to note that part of the land has been directly put up for sale for years, with a report published by the Auditor General exposing flaws in the process.
"In 2012, the Company entered into a consent to sell land LR. No.8784/4, Athi River (measuring 337 acres) to a local buyer at a price of Ksh2,200,000 per acre against the carrying value of Ksh5,200,000 per acre. However, the buyer defaulted on the provisions of the consent by not providing an acceptable bank security within the period of consent.
"The case was taken to court after which the parties settled at a renegotiated price of Ksh4,500,000 per acre on 3 May 3 2019. The company thereafter revalued the investment property to a carrying value of Ksh5,256,291 per acre," read the report signed by Auditor General Nancy Gathungu in October 2020.
Sale of EAPCC land has been controversial and has featured in the news for the wrong reasons. Buyers have been duped into buying the land before learning the hard way that the property was not for sale.
Recently, sale of EAPCC land has become a matter of national interest after President William Ruto ordered the revocation of underdeveloped Athi River land titles.
Following his order, the government moved in to demolish houses and structures erected on the large tracts of land.
